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Gen govʼt deficit at HUF 41 bln in Q1-Q3 2019

According to preliminary data, the deficit of the general government sector in the Q1-Q3 2019 was HUF 41 billion, 0.1% of GDP, the Central Statistical Office (KSH) reports.

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The balance improved year-on-year by HUF 262 billion, or by 0.8 percentage points as a proportion of GDP. The improvement of the balance was due to a larger increase in revenues than in expenditures, according to KSH.

In Q1-Q3 2019, the general government sector’s revenues were HUF 14.747 trillion and its expenditures HUF 14.788 tln.

Revenues went up by HUF 1.004 tln or by 7.3%. The largest, HUF 465 billion (8.2%) increase in value was recorded in taxes on production, within which VAT revenue growth was HUF 304 bln (10.2%). Revenues from taxes on income were HUF 201 bln (9.7%) higher than a year earlier. Social contributions rose by HUF 274 bln (by 7.1%). Other revenues increased by HUF 62 bln (by 2.9%).

Expenditures increased by HUF 742 bln or by 5.3%. The growth in case of gross fixed capital formation was HUF 261 bln (16.3%), regarding intermediate consumption it was HUF 156 bln (7.1%). Paid compensation of employees went up by HUF 160 bln (by 4.9%) and social benefits other than social transfers in kind increased by HUF 129 bln (by 3.6%). Interest expenditures grew by HUF 49 bln (by 6.6%). Other general government sector expenditures were reduced by HUF 13 bln (0.5%).

In Q3 2019, the general government sector had a deficit of HUF 247 bln: 2.1% of GDP. The balance worsened by HUF 179 bln or by 1.5 percentage points compared to the same period of the previous year. Revenues increased by HUF 205 bln (by 4.3%), and expenditures were HUF 384 bln (7.9%) higher than a year earlier.